Close
Close

Buy a life insurance plan in a few clicks

Now you can buy life insurance plans completely online right here.

  • Kotak e-Term Plan

    Kotak e-Term Plan is a pure term plan that provides a high level of protection to your loved ones in your absence.

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Back

Benefits of Term Insurance with Critical Illness Rider

Benefits of Term Insurance with Critical Illness Rider

A term insurance plan is an important insurance product in the industry. It offers a high sum assured at a low premium and provides financial security to your loved ones in your absence. Many people prefer a term insurance policy as compared to a traditional life insurance plan. Once you understand what term insurance is, you will be in a position to consider riders/add-on covers for your term plan. However, not many are aware of the benefits offered by an add-on cover to the term plan. If you buy add-ons for your policy, you will get an enhanced cover and your life becomes easier.

What are riders in insurance?

A rider is an additional benefit on your term insurance and it will come into play in case of a specific eventuality. It is over and above the basic term insurance cover. A rider is included in your term insurance plan or you have to opt for it. Based on your health and needs, you can choose term insurance with critical illness rider as a value-added insurance cover for critical illnesses. Riders are of different types and based on your plan, you can choose the one that works the best for you. While buying a term plan, availing of a critical illness rider is essential. Such a rider will provide for extra financial assistance in case of a medical emergency. An illness or an accident can come unannounced and this is when a critical illness rider helps. You need to understand how this rider works. When you have a rider for the policy, you will receive a lump sum on the diagnosis of a critical illness, which is specified in the policy. As per the terms and conditions of the policy, the detection of critical illness could terminate or continue and it is important to check the coverage very carefully before you decide on a rider. There are innovative critical illness riders, which include different diseases including lifestyle disease.

What are the Benefits of term insurance with critical illness rider?

Term insurance along with a critical illness rider has a host of benefits to offer. Some of these are listed below.

  • You can use this rider will act as a tool for income replacement 
  • You can avail of the rider to take care of the medical expenses 
  • You will get a double tax benefit 
  • You can take additional coverage for major diseases like cancer, heart attack, paralysis, organ transplant, bypass surgery, kidney failure, and stroke

Things to keep in mind when buying a rider

Here are a few things you need to consider before you buy a critical illness rider.

  • The rider provides for tax benefit under Section 80C and 80D of the Income Tax Act 
  • The sum assured amount chosen under the plan is payable in case of total permanent disability or demise of the insured 
  • The benefit amount payable will be equal to the critical illness cover you have chosen 
  • The benefit will be paid at the time of first diagnosis itself as there is no minimum survival period required 
  • The premiums can be paid in installments   

Consider your present health condition and financial requirement before you purchase a term plan. This will help you make a well-informed decision about choosing suitable riders.

Tags

Also read

  • Most Common Life Insurance Riders to Enhance Your Existing Policy
    • 12th Nov 2019
    • 450

    Most Common Life Insurance Riders to Enhance Your Existing Policy

    Insurance riders adds an extra benefit on your insurance cover and build a policy that will suits your needs. Here are different types of term insuran...

    Read more
  • All about Life Insurance Calculators
    • 14th Jan 2020
    • 341

    All about Life Insurance Calculators

    Life insurance calculator helps you to figure out the amount of premium to pay for a certain insurance plan. Click here to know how to use life insura...

    Read more

Related Plans

  • Kotak Term Plan

    Kotak Term Plan

    The Kotak Term Plan is a pure risk cover plan and an economical way of providing an adequate level of financial protection.

    Know more
  • Term Insurance Online - Kotak e-Term Plan

    Term Insurance Online - Kotak e-Term Plan

    Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...

    Know more